NMLS Exam Review 2022/2023 Latest Updated with Complete Solutions

What law deals with credit, APR, and advertising of consumer loans? - ANSWER-TILA/Regulation Z Which regulation prohibits kickbacks? - ANSWER-RESPA/Regulation X Which regulations requires the lender to cancel PMI when the loan reaches 78% LTV? - ANSWER-HPA/Homeowners Protection Act Which regulation prohibits fee splitting? - ANSWER-RESPA/Regulation X "X" is the letter used to describe which regulation? - ANSWER-RESPA RESPA is the acronym used to describe which law? - ANSWER-Real Estate Settlement Procedures Act What type of mortgage requires a nonrefundable funding fee? - ANSWER-VA loan What is the provision in a mortgage enabling a lender to demand full repayment if the borrower DEFAULTS on the loan? - ANSWER-Acceleration Clause What is the provision in a mortgage enabling a lender to demand full repayment if the borrower TRANSFERS the loan? - ANSWER-Alienation Clause What does CFPB stand for? - ANSWER-Consumer Financial Protection Bureau What 2 laws created the CFPB? - ANSWER-Dodd Frank Act and Consumer Finance Protection Act Which regulations is designed to help meet the credit needs of the communities in which it operates? - ANSWER-CRA/Community Reinvestment Act Under ECOA rules and regulations, how many days does the borrower have to request a copy of an appraisal report if the application was denied? - ANSWER-90 days Under ECOA rules and regulations, how many days does the lender have to provide a copy of an appraisal report, once requested by the borrower? - ANSWER-30 days If a loan application is APPROVED, under ECOA rules and regulations, when MUST a copy of the appraisal be provided to the borrower? - ANSWER-3 business days Conforming loans follow the guidelines of which regulators? - ANSWER-Fannie Mae and Freddie Mac Which regulation requires the lenders to "be equal" when extending credit to borrowers? - ANSWER-ECOA/Regulation B How old must a borrower be to qualify for a reverse Mortgage? - ANSWER-62 years old Which regulations has the primary function of preventing identity theft? - ANSWER-FACT Act/Fair and Accurate Credit Transactions Which regulation has Section 114 Rules? - ANSWER-FACT Act Which regulations requires the creditor to verify the VALIDITY of any change of address received? - ANSWER-Section 114 of the FACT Act What is the payment method used in a reverse mortgage that allows the homeowners to receive a monthly check while living in the property? - ANSWER-Tenure Method What is the fraud scheme where a borrower uses someone else's name to purchase the property, but that person will not be living at the property? - ANSWER-Straw borrower What government lender insures mortgages? - ANSWER-FHA/Federal Housing Administration What government lender guarantees mortgages? - ANSWER-VA loans What government lender loans money to fund purchases in rural areas? - ANSWER-USDA/Dept. of Agriculture